Break-Even Calculator — Units to Cover Fixed Costs
A break-even point is the sales volume where contribution margin exactly covers overhead. Below it you lose money; above it every extra unit is profit (before tax).
Units to break even500
Break-even revenue25,000.00
Contribution per unit20.00
Contribution margin40%
How this calculation works
Contribution per unit = selling price minus variable cost. That is the amount of each sale that can pay rent, salaries, and other fixed costs.
Break-even units = fixed costs ÷ contribution per unit. If contribution is zero or negative, there is no finite break-even — every extra sale deepens the loss.
Break-even revenue is that quantity times the selling price, so you can compare it with a sales target instead of a unit count.
Worked example
Fixed costs 10,000, price 50, variable cost 30. Contribution is 20, so you need 10,000 ÷ 20 = 500 units, or 25,000 of revenue, before you start making a profit.
Frequently asked questions
What counts as a fixed cost?
Costs that do not change with the next unit: rent, salaried staff, insurance, software subscriptions. If a cost scales with volume, put it in variable cost instead.
What if my price is below variable cost?
You cannot break even by selling more — each unit loses money. Raise price, cut variable cost, or stop that product.
Does this include tax or loan payments?
No. It is an operating break-even. Add tax and debt service only after you know the volume that covers the business's cash overhead.
Are my numbers stored?
No. The calculation runs in your browser.
This tool is provided for general information only. Verify important figures independently. · Last reviewed: August 25, 2026